Citigroup Expects Sale of Some South America Retail Units in September

RIO DE JANEIRO—Citigroup Inc. expects to announce the sale of some of its South America retail operations by mid-September, said Helio Magalhã es, president of the bank's Brazilian unit.

Citi said in February that it planned to sell its consumer operations in Brazil, Argentina and Colombia.

"We should have at least a month ahead of us before we make a formal announcement," Mr. Magalhã es said during an event in Rio de Janeiro. "It should be in the middle of September."

The head of Banco Santander Brasil, the Brazilian unit of Spain's Banco Santander SA, said last week it would probably present a bid for Citibank's operation in Brazil.

Brazilian banking giant Itau Unibanco Holding SA's vice president for Latin America, Ricardo Marino, told reporters in April that I tau was considering making an offer for the Citi assets.

Citi has long struggled to compete in Brazil, even during the economic and lending boom that preceded the current recession, because of high costs associated with operating in the South American country and what insiders have called a weak strategy for dealing with the country's compliance quirks.

Brazil's banking industry is highly concentrated in five banks: Itau; Banco Bradesco SA; two government-owned giants, Banco do Brasil SA and Caixa Economica Federal; and Santander. Together they control almost 70% of the assets in the Brazilian financial system.

Citi's business in Brazil has just 1% of the financial system's assets, according to central bank figures.

Write to Rogerio Jelmayer at [e-mail]

(END) Dow Jones Newswires

August 04, 2016 12:55 ET (16:55 GMT)

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